As individuals buying gold, it can sometimes be difficult for us to decide when and if buying gold is a smart decision. There are so many so-called experts offering what appears to be conflicting advice on the subject.
So it occurred to me that it might help to keep an eye out for when top investors, institutions and even countries were choosing to buy gold.
In this first post in the series, we’ll look at a huge purchase just made by the University of Texas Endowment Fund.
After Harvard, the University of Texas has the country’s largest endowment fund, with assets of about $19.9 billion dollars.
Their most recent move has been to add $500 million in gold, bringing the fund’s total gold holdings up to a worth of about $987 million.
Why the decision to buy more gold right now?
Kyle Bass, a Dallas hedge fund manager and member of the endowment’s board, said:
“Central banks are printing more money than they ever have, so what’s the value of money in terms of purchases of goods and services? I look at gold as just another currency that they can’t print any more of.”
We have heard that point of view from many other people, but it is interesting to hear it repeated, and acted on, by such a large institution.
The endowment, which oversees funds held by the University of Texas System and Texas A&M University, has 6,643 bars of bullion, or 664,300 ounces, in a Comex-registered vault in New York.
Yes, they are holding their gold as a physical asset, in the form of gold bars.
If you were wondering if now is still a good time to buy gold, Kyle Bass ‘s words, and actions, should give you the confidence to move ahead and make the purchase now.
You can buy gold coins and gold bars online at GovMint.com.